CAPITAL FUNDING PLAN FOR PRODUCT LAUNCH
CASE STUDY
SITUATION / BACKGROUND
An owner of a small technology solution company had developed a Business Continuity solution. After some initial sales he was interested in bringing the product to market as web enabled platform.
CHALLENGE
- Needed capital to fund platform development & go-to-market plan
- Organization had zero sales staff to support expansion
- Lack of cash flow forecasting posed hurdle for capital funding
STRATEGIC STEPS
- Developed initial cash flow forecast for basis of working cash
- Built three-year P&L OpEx forecast showing projected sales and expenses using funds
- Facilitated introductions to investors for capital ask
RESULTS
The result of the work yielded an investing organization to fund the product offering launch.
- Capital Plan Highlights
Capital plan use of funds included: (a) solution platform development, (b) comprehensive advertising and go-to-market plan for capturing business, (c) building out a regional salesforce to handle leads and close deals.
- Capital Approved at $1.2M
Business was able to secure an investor package of Series B Debentures through a mid-south investing house. Business owner met with sales team placing the debentures in early November 2008.
CONCLUSION
Much of business is about timing and this Case Study illustrates this fact. The weekend after meeting with the investment house sales team, AIG requested a bailout by the Federal government. The following week the deal fell through for final funding execution due to the overall market conditions.
